Is Net Worth THE Key Money Number? Think Again
A better number to track (though net worth is still useful)
I’ve been working toward “work-optional” status (not to say retirement) for a long time.
Long enough that, once achieved, it won’t be considered “early retirement.”
An important part of this journey has been tracking our income and expenses, as well as our progress toward financial independence — the point at which we have enough to no longer need to work for money and can instead work on things that interest us at the level we want regardless of pay, travel, etc.
One of the important numbers I look at is our net worth.
Net Worth — What It Is and Why It’s Important
Net worth is the total value of all our assets (e.g., investments, bank accounts, rental properties, homes, cars, etc.) minus the total we owe (mortgage, business loans, auto loans, credit card balances, etc.).
Unless you’ve been living under the proverbial rock (or just haven’t read much about personal finance), you know how important your net worth is.
It’s one of the main measures of wealth.
- If you have between $1 million and $5 million, you’re considered a…
